New Zealand: Business confidence improves in July
Latest reading: Business confidence came in at 47.8 in July, up from 46.3 in June; firms grew more upbeat about exports, employment and profits. The ebbing of global tariff turmoil after the U.S. clarified multiple “reciprocal” tariff rates for its trading partners could have underpinned the rise in sentiment.
Moreover, reported past activity—which has the strongest correlation with GDP—improved in July, but remains negative for retail, construction and manufacturing.
Panelist insight: ANZ Bank analysts, who compiled the business sentiment survey, said:
“It continues to be tough going for many firms. Most forward-looking activity indicators saw little movement this month. The past activity measures show a very wide range of experiences across different sectors, with agriculture storming ahead but construction and retail reporting a significant renewed slump. It appears residential builders are giving up on a recovery any time soon, with a sharp drop in construction intentions this month, to the lowest level in a year.”